FOREIGN BROKERAGE SERVICES

In its role as Trustee for many foreign trusts, Prudential is pleased to open brokerage accounts in the name of its subject trusts. These accounts can be opened all over the world. Recent years have seen great interest in brokerage accounts that deal in U.S. securities. These securities include stocks, bonds, options, derivatives, futures contracts, etc. The brokerage account dealing in these U.S. securities can be located either within the U.S. or without. Prudential has solid relationships and accounts at a number of the leading brokerage firms in the U.S.

Where an account is legally owned by a foreign trust, the earned income from trading in such accounts is tax exempt. While a tax may be imposed on dividends or interest, the capital gains enjoyed from the buying and selling of the securities is tax free. Prudential acts in the role of legal owner of the accounts and maintains a strict accounting for the benefit of each trust so involved. These tax free accounts are available only to non-U.S. persons, and of course each foreign trust under Prudential's administration qualifies.

U.S. Persons who make application through our Bahamas legal firm, American Barristers, may be eligible for participation in a strategy that would permit the funds they currently invest in the U.S. and funds that they might have invested in the U.S. in the future to be lawfully expatriated and to legally become foreign funds. While this might be accomplished as part of an estate planning strategy, a business reorganization strategy, an asset protection plan, or a comprehensive financial planning strategy, the result would be the same. Once legally owned and controlled by a truly foreign entity, such funds would be eligible for tax free investment. In the case of Prudential, only properly settled, non-grantor, foreign trusts may participate through the Trustee Company.

While great interest has been recently expressed with regard to U.S. accounts, Prudential is free to establish brokerage accounts on any exchange in the world for the benefits of the trusts under its fiduciary control. We would be pleased to refer any interested party to an offshore provider who can effectively advise them on the legal requirements, cost and benefits of such strategies.